"the Bank knew "crazy borrowing" was taking place and the price of houses and other assets was rising unsustainably.Just remind me who decided that the Bank of England would be responsible for setting interest rates and giving them few other control mechanisms... Was it by any chance Gordon Brown? Should he not be held responsible?
But the Bank thought this problem was less serious than it turned out to be....
The Bank relies too much on interest rates to control the economy, he added.
In the interview with BBC business editor Robert Peston, he said interest rates were "a blunt instrument", because they affected the whole economy."
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